iit kharagpur ges

Distributed Power Generation - The next big opportunity?

Global Entrepreneurship Summit

IIT Kharagpur, IndiaJanuary 12, 2013

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‘’Entrepreneurship is the pursuit of opportunity beyond resources controlled’’

- HBS Professor Howard Stevenson

What is Entrepreneurship?

Distributed Power Generation

Distributed Power Generation 3

The Opportunity

Distributed Power Generation 4

The Opportunity -Energy Access

- More than 1.4 Billion people in the world have no access to electricity

- Of this, 400 Million people live in India

Distributed Power Generation 5

Multiple dimensions of energy access

Social

EnvironmentEconomic

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Multiple dimensions of energy access

1. Social a. Urban Vs. Rural :94% Vs. 57% Electrification of households(2009)

b. Gender – Women mostly affected

c. Health and Safety- Respiratory

diseases- Eye impairment- Fire hazards

2. Economic

• Kerosene usage- $2 Billion per year in India(Source: IFC)

• Subsidy*– Rs. 27,352 Crores

• Loss of productivity

• Poor pay higher cost per unit of electricity

* OMC Under-recovery(2011-12)

3. Environment

• Emission of CO, Co2, Noxious gases

• Loss of forest cover and vegetation

The Opportunity lies in profitably serving this underserved market

Distributed Power Generation 7

The Pursuit

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- Power Generation at the point of consumption

- Renewables(Solar, Biomass, Wind, Small Hydro)

- Innovative technology and business models

- Tap the Bottom of the Pyramid market

Distributed power generation and sale

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“beyond resources controlled” or Challenges

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Social/Cultural – • Lack of Awareness• Consumer behaviour• Local caste and religion dynamics

Economic – High capital cost, payment security

Infrastructural • Remote locations• Operation and Operations

Challenges

Distributed Power Generation 11

The Trailblazers

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• Founded in 2007

• Founder : Gyanesh Pandey, Alumnus of IT-BHU and Rensselaer Polytechnic Institute, USA

• Use biomass waste(husk) to produce electricity

• Providing electricity to 300 villages and hamlets with 200,000+ villagers

1. Husk Power – Power from rice husk

Distributed Power Generation

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• Founded in 2012

• Founder – Yashraj Khaitan, 24, Alumnus of University of Berkley, USA

• Pre-paid micro-grids using proprietary Smart prepaid-meters

• Micro-grid managed owned and operated by a local entrepreneur

2. Gram Power – Technology Innovator

Distributed Power Generation

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• Incorporated in 2011

• Co-Founder – Paul Needham, droput from PhD from Cambridge University

• Pioneering concept of “progressive purchase”

• Prepaid energy purchase – through SMS

3. Simpa Networks –Business Model Innovator

Distributed Power Generation

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• Founded in 1995

• Founder – Harish Hande, Alumnus of IIT KGP and University of Massachusetts

• Winner of Ramon Magsaysay award

• Facilitator of micro-financing

• Sold, serviced and financed more than 115,000 systems since 1995

4. SELCO – The Social Enterprise

Distributed Power Generation

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Summary

How do you make a real difference?

Distributed Power Generation

Catalysed by Harish Hande’s SELCO

Do you want to make a real difference? Start now!!

Thank you

Madhavan NampoothiriFounder and Directormadhavan@re-solve.in

www.re-solve.in